Global Insight, the world's leading company for economic
and financial analysis and forecasting, today released the first-quarter
2007 update of its study, House Prices in America. The updated U.S.
housing valuation analysis shows a widely dispersed drop in single-family
home prices, resulting in a continued decline in the incidence of overvaluation
in the nation's housing market.

The overall number of single-family housing units deemed to be overvalued
fell from 17% in the fourth-quarter 2006 to 14% (revised). Meanwhile,
in terms of single-family asset value, the percent deemed to be overvalued
fell to 25% from 33% (revised) in the prior quarter.

Nationally, single-family home prices increased in the first quarter
at an annualized rate of 2.2%. On a year-over-year comparison, however,
prices are up only 3.0%, further normalizing the market with the weakest
gain in a decade. Nearly 50% or 157 of the 317 metro areas in the study
experienced price declines in the first quarter, accounting for 38%
of all single-family units and half of all single-family real estate
assets in the nation.

The most highly concentrated declines, while widely dispersed, occurred
in areas that had experienced the most dramatic run-up in overvaluation,
including California, Florida, New York, and New England. The industrial
Midwest was hit hard by the cutbacks in automobile manufacturing. The
most dramatic declines among the nation's large metro areas were seen
in California's Central Valley. Sacramento CA, where prices fell by
8.2% in the past year and 10.0% since 2005, experienced the greatest
decline among the nation's large metro areas.

Prices were most resilient in the Pacific and Mountain Northwest, most
of Texas, and the Carolinas.

Markets identified in the study as overvalued decreased to 54 metro
areas in the first quarter, down from 62 metro area markets (revised)
in fourth- quarter 2006. The nation's most overvalued markets are now
Bend, OR and Prescott, AZ, highlighting the precarious nature of the
price resiliency in the interior West. Meanwhile, the most undervalued
markets continued to be in Texas, specifically Dallas (24.9%) and Houston
(22.1%).

James Diffley, managing director of Global Insight's Regional Services
Group, said, "The price declines we are seeing today in California,
Florida, and New England were predicted two years ago when we identified
them as the most extremely overvalued markets in the nation. Widespread
weakness across the country is a reflection of the dramatic swing in
sentiment and bargaining power between buyers and sellers."

"Going forward," Diffley continued, "the accelerating
declines in California, where home prices crested earliest warn of further
declines elsewhere. The huge glut of new and existing homes for sale
on the market, and the tightening of credit standards in light of the
sub-prime mortgage troubles, will continue to exert downward pressure
on prices for some time."

The House Prices in America study, a joint effort by Global Insight
and National City Corporation, examines the top 317 U.S. real estate
markets, representing 92% of the single-family housing market, to determine
what home prices should be, accounting for differences in population
density, relative income levels, interest rates, and historically observed
market premiums or discounts. Markets with valuation premiums above
34% were deemed at risk for price corrections based on the typical degree
of overvaluation that preceded the 63 known local market price declines
observed since 1985.

House Prices in America combines a statistical model originally developed
at National City Corporation (http://www.nationalcity.com/housevaluation)
with data largely developed at Global Insight. More information on Global
Insight's housing valuation analysis is available at http://www.globalinsight.com/housingvaluation.

Global Insight

Global Insight, Inc. (http://www.globalinsight.com/) is a privately
held company that brought together the two most respected economic information
companies in the world, DRI and WEFA. Global Insight provides the most
comprehensive economic and financial information available on countries,
regions and industries, using a unique combination of expertise, models,
data and software within a common analytical framework to support planning
and decision-making. Through the world's first same-day analysis and
risk assessment service, Global Insight provides immediate insightful
analysis of market conditions and key events around the world, covering
economic, political, and operational factors. The company has over 3,800
clients in industry, finance, and government with revenues in excess
of $95 million, over 600 employees and 23 offices in 13 countries covering
North and South America, Europe, Africa, the Middle East, and Asia.

About National City Corporation

National City Corporation , headquartered in Cleveland, Ohio, is one
of the nation's largest financial holding companies. The company operates
through an extensive banking network primarily in Ohio, Illinois, Indiana,
Kentucky, Michigan, Missouri and Pennsylvania, and also serves customers
in selected markets nationally. Its core businesses include commercial
and retail banking, mortgage financing and servicing, consumer finance
and asset management. For more information about National City, visit
the company's Web site at http://www.nationalcity.com/.
Its valuation research may be found at http://www.nationalcity.com/housevaluation.
Global Insight, Inc.